(News Bulletin 247) – The Paris Stock Exchange is up this Friday, driven by a clear slowdown in inflation in Europe, to the lowest in two years.

The Paris Stock Exchange validates its rebound for the day, after confirmation late in the morning of a deceleration in inflation in the euro zone. The CAC 40 closed sharply up 0.93%, returning 7,200 points to 7,233.91 points, Friday evening. The weekly results are therefore positive for the flagship Parisian index, which gained 2.7% over the week, despite its decline of 0.6% on Thursday.

Markets are appreciating the recent trajectory of consumer prices on both sides of the Atlantic, which lends credibility to the prospect of an end to central bank rate hikes. In Europe, the consumer price index calculated according to European standards (HICP) slowed to 2.9%, in line with the “flash” estimate, after an increase of 4.3% in September.

Money markets are now counting on a rate cut of 1 percentage point from the European Central Bank (ECB) by the end of 2024, according to Reuters.

In the United States, the markets took note this week of a clear slowdown in inflation for both consumers and producers.

“With an inflation surprise of 0.1% in the United States, markets have decided to once again buy into the story of a soft landing with disinflation. The way the US inflation report has caused the markets to take off reflects an adjustment of trend following strategies, but the shock wave was enough to make this week a positive week in all areas. Long rates fell in a ratio of 1 to 1 with expectations regarding monetary policy, which have been revised considerably downwards,” explains Lombard Odier.

Rémy Cointreau supported by an analyst

In terms of values, it’s dead calm. We can cite Rémy Cointreau which gained 4.6% after an increase in recommendation from Kepler Chevreux which moved to purchase on the file.

Teleperformance which recovered 1.3% after raising 1.4 billion euros of long-term bonds, which was oversubscribed more than 5 times.

On the currency side, the euro increased by 0.1% to 1.0865 dollars. Oil prices are rebounding strongly after losing more than 4% the day before. The barrel of Brent from the North Sea for delivery in January gained 3.5% to 80.11 dollars while its American equivalent, the barrel of West Texas Intermediate (WTI) for delivery in December, appreciated by 3.3 % to 75.33 dollars.